Oroton enters voluntary administration
WORDS BY VERONICA STANFORD
Déjà vu.
Just a few days after the announcement Lover was going into voluntary administration, yet another Aussie brand has collapsed.
After a trading halt earlier this week, OrotonGroup has entered into voluntary administration posting a $14.2 million loss for the 2017 financial year.
For now, Oroton’s 59 stores will continue to trade as normal, with administrator Vaughan Stawbridge of Deloitte Restructuring Services being optimistic of a positive outcome for the brand.
“Our focus is on continuing to operate the business, as we seek a recapitalisation or sale of this iconic brand,” he said. “The flexibility of the voluntary administration process enhances the ability to further restructure OrotonGroup in a manner which makes it possible to achieve the best possible outcome in these circumstances.”
Ahead of a first meeting of creditors tomorrow, Oroton’s interim CEO, Ross Lane, has said the decision was unavoidable.
“We have made every effort to avoid taking this decision but have been unable to source a viable solution which could achieve a better outcome than voluntary administration.”
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